how leadership of employees via objectives and key results (okr) speeds up the digital...
TRANSCRIPT
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26.10.2016 / T3CON 2016 / MunichPatrick Lobacher & Manuel Eisbrenner
www.pluswerk.ag
OKRHow leadership of employees via Objectives and Key Results (OKR) speeds up the digital transformation at EDEKA
+Pluswerk AG
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Your Partner for the Digital Transformation
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+Pluswerk AG in a nutshell
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• Founded 2010 (as legal unit, predecessor since over 20 years)
• More than 130 employees at more than 10 locations in
Germany, Poland, South Africa and Rumania
• Specialized in complex and sophisticated solutions in the area
of the “Digital Transformation”
• Our core values:
• Based on partnership
• Passionate
• Recoverable & Qualitative
• Creative & Innovative
Patrick LobacherChairman of the board
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+Pluswerk AG - Fullservice Agency for the Digital Transformation
Consulting Agency Systems House
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Innovations
Design Thinking
Lean Startup
Lego Serious Play
Business Model Canvas
Value Proposition Design
Lean Canvas
Objectives & Key Results
4DX
Working Out Loud
New Work
Management 3.0
Team-Development
Leadership Coaching
Organizational Consulting
Process Consulting
Change Management
(Large Group) Moderation
IT-Consulting
Project Management
Agile / Lean
People Processes
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References
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Leadership
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at EDEKA
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EDEKA
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The Edeka Group is the largest German supermarket corporation, currently
holding a market share of 26%.
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EDEKA
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● Employees: 346.800● Retailer: 4.500● Shops: 12.600● Revenue: 48,4 Mrd. EUR
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EDEKA Eisbrenner
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● One of the most innovative and profitable retailer within the group
● Location: Hannover● Employees: >= 60
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EDEKA Eisbrenner
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“I’m looking for a system which enables me to lead several stores at the same time with the same, high quality level.”
“Why have some companies a better performance than others?”
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EDEKA Eisbrenner
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● Manuel Eisbrenner was looking for a way to increase the following:○ Employee motivation○ Customer satisfaction○ Productivity○ Management absence
(self organizing)
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EDEKA Eisbrenner
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● Looking at the possibilities out there he came across the “Objective and Key Result framework” mentioned by Google (in the Book “How Google works”)
● Collected all information which were available
● This was the point we came in
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OKR
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Agile and modern leadership of employees
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The traditional “Management by Objectives” comes to an end...
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Just 13% of all employees (worldwide) are really motivated in their jobs...
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Just 55% of all managers could name at least one company
priority...
Gallup Daily Tracking, Januar 2016
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MbO =
Demotivation&
Disorientation
?
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“We basically unplug anything which is anual. The notion is that, in the digital age, sitting down once a year to do anything is weird, it’s just bizarre.”
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Jeff Immelt, CEO GE, 2015
What’s wrong with a MbO?
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“Allthough we are using agile tactically, we are using waterfall for strategy and goal setting”
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Felipe Castro, 2016
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Top downUnidirectional
Irreversible flowNo feedback loopsNo transparency
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The MbO waterfall
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Culture Top Down, C&C, Family/Performance/...
Strategy Annual static planning
Goals Cascading (waterfall) goals
Tactics Planning
Operations Waterfall development
The traditional stack
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Why are we not able to execute strategies & goal management
properly?
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30% failure to coordinate across units
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Why Strategy Execution Unravels, HBR - 2015
40% failure to align
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Digital Transformation / Digitalization
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LegacyCompany
complicatedhierarchical
managementprocessesknowledge
formalrigid
...
DigitalCompany
complexnetwork
leadershippeopleskills
dynamicagile
...
Planning, management, optimization and implementation of the company’s value-added chain in the digital age
Agile / LeanScrum
KanbanDesign Thinking / LSP
Lean StartupOKR / 4DX
Management 3.0...
Digital Business Transformation
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How does the Silicon Valley handle this goal management thing...
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OKRObjectives & Key Results
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Objectives
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Inspiring Motivating Qualitative
Measurable QuantitativeMetrics Milestones
Impressing
Key Results
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Objective
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To be aperfect cook
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Objective
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develop 3 own creations
process 4 new spices
create 2 African meals
To be aperfect cook
Key Results
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Values OKR
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Alignment Transparency(Intrinsic)
Motivation
Self OrganizingTeams
ContinuousImprovement
Short Interations Focus
Commitment
Priciples OKR
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History of OKR
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• End of the 70ties:
Invention of OKR by Andrew Grove (Co-founder Intel)
Basic idea: modernize MbO and connect them to “SMART”
• In use at Google since 1999 till today
• Strong propagation (Silicon Valley) through “John Doerr” (Management
consultant)
• Usage started in the USA at LinkedIn, Twitter, Apple, Oracle, Ebay, Zynga, …• Since 2014 increasingly in EMEA at MyMüsli, Breuniger, Red Bull, Zalando,
Edeka, Lamudi, Stylelight, ...
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The OKR cycle
Mission statement
(MSC)Moals OKR ZyklusOKR
Planning
WeeklyOKR
OKRReview
Retros-pektive
OKR-List
OKR Master
Standard OKRExtension by pluswerk:consulting
3 - 10 years 1 year
3-4 months
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OKR
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• develops to a result- and value-oriented culture
• gives autonomy to the teams in terms of the goal management
• strengthens self-organizing teams
• helps to keep focus and focuses on priorities
• increases productivity and satisfaction
• enables and supports the “Agile Transformation” and the “Digitale
Transformation”
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Challenges
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at EDEKA
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Challenges at EDEKA
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• Different working times
• Different commitment
• High amount of “mini-jobber”
• Different knowledge status
• Teams are changing “on-the fly”
• High stress level
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Solutions for the challenges
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• Culture audit
• Vision-Workshop why to use a agile leadership method
• Training for all employees (at different events)
• Education of the “OKR-Masters”
• One OKR-Master for each Team (Checkout counter,
Cheese, Meat, Bevarages, …)
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Solutions for the challenges
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• Adjustment of OKR-Framework to reflect working
environment
• Choose software (Trello in this case)
• Coaching of first events
• Support
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Learnings
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• Weeklys doesn’t work (Bi-Weeklys instead)
• Remote participation of events (often) not possible
• Some employees are overchallenged at a specific point
• Fast reaction times a needed sometimes which are in
conflict with the OKR
• General approach works good
• Meta-Goals for the OKR introductions are reached
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Next steps
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with OKR
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Sources
okr-beratung.de
amomi.de
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Sources
okrguide.org Amazon
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Video Training
www.video2brain.com
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Conferences
Agile Leadership with OKRs16. November 2016, 12:40 - 13:25 Uhr
The agile company26. Oktober 2016, 09:00 - 10:00 Uhr
OKR and BVB - Why OKR is the better Cristiano Ronaldo or why Scrum allone makes you not agiles | 03.06.2016
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How leadership of employees via Objectives und Key Results (OKR) speeds up the digital transformation at EDEKA | 26.10.2016
Thank you very much!
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And much success with OKR
okr-beratung.de
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Contact
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Christian [email protected]+49 89 130 145 22
Patrick [email protected]+49 89 130 145 20
Magnus [email protected]+49 2204 842662
pluswerk:okr
+Pluswerk AGWilhelm Hale Str. 5380639 München
T: +49 89 130 145 0F: +49 89 130 145 [email protected]
www.okr-beratung.dewww.pluswerk.ag
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+Pluswerk AG - Fullservice Agency for Digital Transformation
Strategy Consulting Digital Technology Operations
Digitalization / Digital TransformationHostingEditorialContent
OperationsOKR / New Work
(Digital) Leadership / Management 3.0Agile / Lean / Innovation Mgt.
Digital VisionCoaching / Sparing
PM / ConsultingDigital Agency
CMS / CRM / PIME-Commerce
IoT
CI / CD / CloudSystemdevelopmen
tSystemintegration
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www.pluswerk.ag